On Tuesday, July 11th, President Museveni met with the Muslim leaders and made a commitment to assist them in developing their communities in accordance with Sharia law should they encounter any challenges with the present government initiatives.
While speaking to the President, the Muslim leaders protested that various government programmes to combat poverty discriminate against them and urged him to endorse their alternative Islamic Parish Development Model.
According to the leaders, Islamic beliefs consider interest-bearing loans, or “riba,” to be strictly forbidden and are therefore not permitted under Islamic law. Programmes like the PDM, they claimed, offer interest-bearing loans.
“It is deemed ‘haram’, meaning forbidden, as it is seen as exploitative. Riba is an Arabic word that means “to increase” or “to exceed” and is commonly used in reference to unequal exchanges or charges and fees for borrowing. Interest is deemed riba, or an unjust, exploitative gain, and such practise is forbidden under Islamic law,” they noted.
The President, who hosted the leaders at State House Entebbe, promised to work to incorporate the Sharia Law guidelines, outlined the benefits of the Parish Development Model (PDM), and reiterated that the government’s goal is to combat inflation with an interest rate of no more than 10% on PDM money.
“Let me study it and see how to merge the Sharia principles within the PDM. We can study it, and if there’s any problem, then we can have a separate budget and channel for the Muslims so that you develop yourselves in your own way.”
“This PDM money we are putting in your SACCOs is a grant from the government and not a loan, and it is your money. The riba I also don’t like is where one wants to get rich using the money of the poor. This money is yours, and the challenge is how to keep it and not lose value,” President Museveni told the Muslim leaders.
Sheikh Yunus Kamoga previously informed the President that, in accordance with Islamic law, they must divide any financial gifts made to them equally between gains and losses.
“If we get a problem in our business, we share the losses collectively between the business owner and the SACCO members-operators, but others, like PDM, whether you have made profits or losses, you have to pay back with interest. That is where the problem is,” Sheikh Yunus Kamoga told the President, adding that the business owner shares 60% and the SACCO remains at 40%.
Sheikh Kamulegeya commended President Museveni for allowing the passage of the Income Tax Amendment Bill No. 2 of 2023, which removed all legal obstacles to the launch of the eagerly anticipated Islamic banking products in Uganda.
“We thank you for that, Mr. President,” he said.
Sheikh Obeid Kamulegeya, the chair of the Uganda Muslim Supreme Council’s (UMSC) national committee and the head of a 21-member Muslim arbitration and reconciliation committee; Sheikh Silman Kasule Ndirangwa; Sheikh Muhammad Yunus Kamoga, the head of Jumiat Dawa Al Salafiya at Nakasero Mosque; and Professor Muhamadi Lubega Kisambira were among those present at the meeting.
According to sources, the Ugandan Mufti, Sheikh Shaban Ramathan Mubajje, was returning from Morocco on official business and was unable to attend the meeting.
